Israeli Firm's Bid to Acquire British Energy Company in Egypt Raises Sovereignty Concerns

Israeli circles have closely followed the controversy sparked by the announcement from Israeli company Ratio Petroleum regarding its plan to acquire the British firm Pharos Energy, which operates in Egypt.

Concerns in Tel Aviv center on the possibility that Egyptian apprehensions over national sovereignty and Israeli influence could obstruct the completion of this strategic energy sector deal.

The Israeli channel i24NEWS reported that Ratio Petroleum's offer to acquire the British company is valued at approximately 124.3 million British pounds, equivalent to nearly 164 million US dollars, bringing the issue of selling strategic assets and the limits of investment openness within Egypt back into focus.

According to the channel, the transaction includes oil and gas assets located in Egypt and Vietnam. Although the deal awaits final approvals from regulatory authorities and shareholders, its announcement has revealed heightened sensitivity toward any potential ownership transfer involving Israeli entities.

The report noted that Pharos Energy specializes in oil and gas exploration and holds concessions within Egypt in the Fayoum, North Beni Suef, and Western Desert regions. The company has faced financial pressures leading it to consider exiting some markets, including the Egyptian market.

i24NEWS highlighted that the Israeli company submitted this acquisition offer as part of its efforts to expand its operations beyond Israel, particularly following its rise in the energy sector after discovering the Leviathan gas field. Reports also indicate that there is consideration of selling part of Pharos's Egyptian assets to a third party in the future.

The channel detailed that Pharos Energy's investments in Egypt focus on two main concession areas that are economically and strategically important. The first concession in the Fayoum region includes 11 oil fields currently in production, with Pharos holding a 45% stake. The second concession is located in North Beni Suef, where the company holds a similar share.

This strategic importance explains the extent of the ongoing debate, with Israeli observers noting that the issue extends beyond a simple transfer of ownership from one foreign company to another. It involves the potential indirect entry of Israeli influence into Egypt's energy sector, which is considered a sovereign sector linked to economic security.

The channel added that this development occurs amid Israel's declared ambitions to become a key regional player in the Eastern Mediterranean energy market, a role that some Egyptian circles view as potentially competitive with Cairo's efforts to establish itself as a regional energy hub.

Concerns have intensified due to recent political and regional tensions, especially during the Gaza conflict. The gas relationship between Egypt and Israel has experienced strains related to border issues, energy matters, and Cairo's stance on the Palestinian displacement issue.

Critics of the deal argue that any Israeli presence within energy-related assets in Egypt could be perceived in the future as a tool for influence or political pressure during regional crises, reigniting discussions about privatization programs and government withdrawal from certain economic sectors.

The report explained that such policies raise apprehensions among segments of the Egyptian public about the possibility that ownership of some assets might later transfer to parties whose interests do not align with those of Egypt, whether through resale or changes in ownership structures.

Concluding its report, the channel pointed out increasing calls for greater transparency in overseeing major deals in sensitive sectors, emphasizing the need to consider national security alongside economic returns. It confirmed that the deal remains in its early stages and requires approvals from regulatory bodies in Egypt and Vietnam, as well as shareholder consent.

Estimates suggest the transaction could be completed during the first half of 2027, but the accompanying debate reflects the sensitivity surrounding energy issues and economic sovereignty in Egypt.